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Friday, June 4, 2010

KEURO reduces stake in Talam

KUALA LUMPUR: KUMPULAN EUROPLUS BHD [] (KEURO) has sold more shares in TALAM CORPORATION BHD [], with the latest disposal of 28.2 million units representing a 1.04% stake in the latter at 13.5 sen per share for net proceeds of RM3.8 million.

In a statement on Tuesday, June 1, KEURO said the shares were sold through Bursa Malaysia Securities Bhd giving rise to a net profit of RM2.11 million or 0.45 sen per share.

Its net assets will also increase by 0.45 sen to 18.9 sen per share.

KEURO said the effect of the disposal was to reduce its gearing ratio from 2.95 times to 2.83 times. It said the book cost of the shares was RM1.69 million.

It said the shares arose from conversion of redeemable convertible secured loan stock-D on May 31, 2010 subsequent to the acquisition of the RCSLS-D on May 20, 2010.

KEURO said 60% of the sale proceeds would be used to repay lenders and creditors, while the balance would be used to pay for Talam financial instruments acquired from a third party approved by KEURO's shareholders at an EGM held in November 2009.